AXT (NASDAQ:AXTI) Stock Price Down 6.6% - Here's Why

Key Points

• AXT shares fell 6.6% to about $53.18 in Thursday trading, with volume significantly below its average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $77 price target, although B. Riley cut its target to $52 and maintained a neutral rating.
• AXT reported stronger-than-expected quarterly results, earning $0.19 per share on $47.59 million in revenue versus estimates of $0.07 EPS and $34.08 million revenue. However, insiders have sold roughly 50,505 shares worth $4.97 million over the past 90 days.

Shares of AXT Inc (NASDAQ:AXTI - Get Free Report) dropped 6.6% during trading on Thursday . The stock traded as low as $53.85 and last traded at $53.1840. Approximately 1,371,372 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 10,294,540 shares. The stock had previously closed at $56.95.

Analyst Upgrades and Downgrades

AXTI has been the topic of a number of research analyst reports. B. Riley Financial decreased their target price on AXT from $73.00 to $52.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 28th. Weiss Ratings raised shares of AXT from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Friday, August 14th. UBS Group set a $90.00 price objective on shares of AXT in a research report on Friday, July 31st. Needham & Company LLC raised shares of AXT from a "hold" rating to a "buy" rating and set a $90.00 target price for the company in a research note on Friday, July 31st. Finally, Northland Securities set a $125.00 price objective on AXT in a report on Wednesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $77.00.

AXT Stock Performance

The firm has a market cap of $3.70 billion, a price-to-earnings ratio of 2,822.45 and a beta of 1.92. The stock's 50 day simple moving average is $63.06 and its 200-day simple moving average is $70.18.

AXT (NASDAQ:AXTI - Get Free Report) last issued its earnings results on Thursday, July 30th. The semiconductor company reported $0.19 EPS for the quarter, beating analysts' consensus estimates of $0.07 by $0.12. AXT had a return on equity of 0.96% and a net margin of 3.23%.The firm had revenue of $47.59 million for the quarter, compared to analyst estimates of $34.08 million. AXT has set its Q3 2026 guidance at 0.300-0.320 EPS. On average, analysts expect that AXT Inc will post 0.8 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director David C. Chang sold 8,333 shares of the business's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $111.17, for a total transaction of $926,379.61. Following the completion of the transaction, the director directly owned 65,165 shares in the company, valued at $7,244,393.05. The trade was a 11.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Leonard J. Leblanc sold 4,000 shares of the company's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $96.07, for a total transaction of $384,280.00. Following the completion of the sale, the director directly owned 113,129 shares in the company, valued at approximately $10,868,303.03. The trade was a 3.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 50,505 shares of company stock valued at $4,972,866 over the last 90 days. Insiders own 5.97% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. American Capital Advisory LLC acquired a new stake in shares of AXT in the first quarter worth approximately $27,000. Kohmann Bosshard Financial Services LLC purchased a new position in AXT in the 1st quarter valued at $31,000. XTX Topco Ltd acquired a new stake in AXT during the 2nd quarter worth $42,000. Jefferies Financial Group Inc. acquired a new stake in AXT during the 3rd quarter worth $52,000. Finally, Global Retirement Partners LLC purchased a new stake in shares of AXT during the second quarter worth $55,000. 49.52% of the stock is owned by institutional investors and hedge funds.

AXT Company Profile

AXT, Inc NASDAQ: AXTI is a global supplier of compound and single-element semiconductor substrates, offering a range of materials critical for high-performance electronic and optoelectronic devices. Founded in 1986 and headquartered in Fremont, California, AXT specializes in the development, manufacture and distribution of wafers composed of gallium arsenide (GaAs), indium phosphide (InP), gallium nitride (GaN) and other compound semiconductor materials. These substrates serve as the foundational platforms for devices used in data communications, wireless infrastructure, advanced computing, consumer electronics and photovoltaic applications.

AXT's product portfolio encompasses a variety of wafer sizes, dopant concentrations and crystal orientations, tailored to meet the precise specifications of its customers.

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